Laing O’Rourke to close Mideast division

By Shane McGinley
  • Sunday, 6 June 2010 10:39 AM
  • Share via facebook
  • Tweet this
  • Bookmark and Share
ACHIEVEMENT: British construction firm Laing O’Rourke, which worked on the Atlantis Hotel in Dubai, is shutting its Mideast division.

ACHIEVEMENT: British construction firm Laing O’Rourke, which worked on the Atlantis Hotel in Dubai, is shutting its Mideast division.

British construction firm Laing O’Rourke, which worked on the Atlantis Hotel in Dubai, is to shut its Middle East operations, it was reported at the weekend.

A source within Laing O’Rourke told the Building.co.uk trade website that Laing O’Rourke was cutting its global workforce from 35,753 to around 20,000.

The firm is the UK’s third largest contractor and began its operations in the Middle East in 2006.

“It’s been a nightmare for my family and hundreds of former colleagues who are out of work. The firm can’t employ more than 4,500 workers and 900 professional staff in the Middle East now, which is down from about 16,000 and 5,000 during the boom - a fall of about three-quarters,” the source told the website.

The closure also affects the firm’s south Asian operations and follows the end of a joint venture in India with Indian firm DLF.

Last year, Aldar Laing O’Rourke, a joint venture between the Abu Dhabi property developer and the UK construction company, told Arabian Business it was cutting 320 jobs.

However, it was confirmed that Laing O’Rourke will maintain its relationship with Aldar, with whom it is working on the AED54bn ($14.7bn) Al Raha beach project.

The firm’s turnover in the region in 2009 doubled to £829m ($225m), the report added.

Related:

Stories

Sharp decline in labourer recruitment in Dubai

Companies

Laing O'Rourke

Also in UAE

Gulf Capital to raise $360m partly for dividend payout

Dubai's Damac begins work on first Iraq project

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: ex-employee Saturday, 3 July 2010 10:34 AM[UAE] - India

I agree with you but at the same time you can't blame all the Directors & Managers.Because of their good management skills and talent our company was sustained during the downturn time compare to other companies. While coming back to my country i have seen most of employees and operatives was treated royally and assisted well during the settlement.This is tough time for Laing O?Rourke in Mideast. I have trust that our company will raise again in Mideast soon.As a ex employee of the company i am happy to share this to u all.

Reply to this comment.

Posted by: Mrs. Vicky Monday, 21 June 2010 4:28 PM[UAE] - canada

It is very sad for the families who are working with the company for umpteen number of years. Those who say, they deserve closure, please do not be happy with the news, tomorrow you may fall in the same situation. So pity on others, others will pity you

Reply to this comment.

Posted by: Ken F Tuesday, 8 June 2010 10:36 PM[UAE]

At least the sun still shines

Reply to this comment.

Posted by: Paul King Monday, 7 June 2010 11:14 PM[UAE] - UAE

Obviously this is bad news for all the fixers that want you to think that wonderland is still on schedule. My guess is that this is very positive news, because the faster the big decisions are taken and the fallout to hurt deeply, the faster everyone will see the new economic landscape clearly. We are in the final chapter of a 25 year credit expansion. We need to allow zombie governments, banks & companies to collapse instead of continuing to bail them out with more credit. Too many, spent money they didn't have, on things they didn't need.

Reply to this comment.

Posted by: The Peregrine Monday, 7 June 2010 12:59 PM[UAE] - UAE

The news article is a little disjointed...facts are not correct. Have seen some earlier comments. Few things to note - you cant clap with one hand. You need the other. JV is based on mutual trust and respect...and the same holds true for both parties engaged. UAE is a place for migratory workforce - who come to work on projects. All projects have deadlines...and the company has met the deadlines. If you thought this is your new found home - think again and you will have all your answers. Redundancies are harsh...but its better faced upfront rather than live in false hopes...

Reply to this comment.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearingTerms and conditions

Further reading

Get E-Mail Alerts
Get E-Mail Alerts

Arabian Business Power 500 2013 - Top 5 from Culture & Society »

Mohammed Al Shaibani  Dahi Khalfan Tamim  Elie Saab  Leila El Solh  Mohammed Al Marri 
View complete list
Features & Analysis
The waiting game

The waiting game

With Dubai’s property market seemingly on the cusp of a new boom...

3
Dubai may get creative to ease looming debt hump

Dubai may get creative to ease looming debt hump

Emirate seen using wide range of strategies from asset sales...

New Abu Dhabi financial zone to challenge Dubai

New Abu Dhabi financial zone to challenge Dubai

For a decade, Dubai has been the MidEast's top financial centre...

Most Popular
Most Discussed
Read all user comments »
Read all user comments »
Read all user comments »